Nationals call for safety valve to protect regions from net-zero emissions by 2050

Scott Morrison has days to win support for a climate package as the Nationals demand a socio-economic safety valve and regular reviews of the impacts.

Bridget McKenzie, left, David Littleproud, Barnaby Joyce, Kevin Hogan and Keith Pitt walk to the Nationals Park Room in Parliament House, Canberra, on Thursday. Picture: Gary Ramage

The Nationals are demanding a socio-economic safety valve and regular reviews of the impacts of net-zero emissions by 2050 on regional jobs and industries, giving Scott Morrison fewer than three days to win their support for the government’s Glasgow climate package.

The Australian can reveal Nationals MPs want the Prime Minister to lock in protections for their communities by inserting a regional socio-economic safeguard into Australia’s climate change update at the COP26 summit in Glasgow.

This would establish a new mechanism allowing a pause on the net-zero plan and targeted financial support for affected communities.

The Nationals are also asking for transition packages for the mining, agriculture and manufacturing sectors to ensure they can prosper in a net-zero world.

Regional Liberal MPs have warned the government against striking a sweetheart deal with the Nationals over a 2050 net-zero target that doesn’t include all rural communities and industries beyond seats held by the junior Coalition partner.

The 28 regional Liberal MPs, who form a larger bloc in parliament than the Nationals, are demanding an even-handed approach and assurances that any agreement isn’t weighted towards the country party.

With cabinet set to ratify the government’s long-term emissions-reduction strategy early next week, Barnaby Joyce delivered the Nationals’ preferred net-zero framework to Mr Morrison and Energy Minister Angus Taylor following a Thursday night partyroom meeting.

The Nationals, who want stronger guarantees the agriculture and resources sectors won’t be negatively affected in the transition, will meet on Sunday to decide if the party will endorse the government’s net-zero pledge.

Scott Morrison eyes Anthony Albanese during question time in Parliament House, Canberra, on Thursday. Picture: Gary Ramage

A “socio-economic mechanism”, backed by reviews similar to those undertaken in the Murray-Darling Basin, is considered key for Mr Morrison to secure support from a slim majority of Nationals MPs who support a net-zero pathway.

Mr Morrison said he was working with the Nationals to “come to the right decision for Australia” and reaffirmed the government’s priority to shield regional and rural communities most affected by the global transition to net-zero emissions. “We’re dealing with supporting the jobs and futures of people in rural and regional Australia,” he said.

“The Nationals, together with the Liberals, are working together to support rural and regional Australia and making sure that we’re doing the right thing to take action on climate change.”

Senior government sources said Mr Morrison was open to safeguards and would work with Mr Taylor to determine how they could be implemented. About half of the Nationals partyroom supports a net-zero road map but wants clearer safeguards before backing Mr Morrison’s plan.

Ahead of COP26, the charge d’affaires at the US embassy in Canberra, Michael Goldman, urged Mr Morrison to set more ambitious 2030 emissions targets, claiming Canberra and Washington shared a “similar level of responsibility” for taking action.

“Australia isn’t, on aggregate, as big an emitter as China and the United States, not close,” Mr Goldman told a Smart Energy Council climate summit. “But according to the Union of Concerned Scientists, it comes in at number 16 globally so it’s in the top 20. But if you consider it in per-capita terms, Australia and the United States are number three and number four respectively.”

Mr Coldman said the US would use Glasgow to push for a pledge for no new investment in oil, coal and gas production and confirmed the Biden administration was pushing for Chinese President Xi Jinping to reverse his decision to snub COP26. “We can’t do it without China ... It is important that Xi Jinping be there in Glasgow,” he said.

The Australian understands a growing number of Nationals MPs, including Anne Webster, Susan McDonald, Pat Conaghan, Darren Chester and Bridget McKenzie, are seeking the net-zero safeguards to protect lower socio-economic regional communities.

Senator McDonald said the net zero strategy must be an “Australian decision, an Australian plan” that had flexibility to protect future generations.

“What’s important to regional Australia, in any road map … when you make a decision you think that you’re going to get certain outcomes and at some point down the road you’ve got to be able to pause by a sign post and say am I still on the right road,” Senator McDonald said.

“I’m very keen that we’re seeing some of that sort of rhetoric in our plan so that Australians in the future will be able to say, ‘great, we are achieving the plans that we expected’, or ‘no, we’re not, we need to amend or adjust’.”

Opposition climate change spokesman Chris Bowen said Labor would not stand in the way of fossil fuel exports — with coal and gas developments to be decided on their commercial viability.

“Exports are determined by the market,” Mr Bowen said.

“What I’m not prepared to do is go in and say, ‘we’re going to stop you exporting now before the market has determined that and somebody else is going to sell them the coal so you’ll have to lose your job, and emissions won’t come down at all’.”